At a public hearing last week, city planning staff shared an update that adds a new dimension to Bentonville’s housing conversation:

Its homeownership assistance program for low-income households wasn’t able to help a single family buy a home.

Why? Low-income households must be able to qualify for a loan independently of the assistance, which would have provided up to 50% of a down payment. Given that Bentonville homes were selling for a median price of over $480,000 in December 2024, the income required to qualify for a loan would likely exceed the limits for the program. 

Simply put, those who can afford to buy a home in Bentonville more than likely earn too much to qualify for down payment assistance.

Now, the city is pivoting to use the grant funds for other projects that benefit the same target recipients.

Homeownership Assistance Program

Bentonville’s homeownership assistance program was to be funded through the Community Development Block Grant (CDBG) program, managed by the United States Department of Housing and Urban Development (HUD). The program awards federal funds annually intended to improve the quality of life for low- to moderate-income individuals and families meeting the below income requirements from HUD: